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Wednesday, September 24, 2008
Advance America Closes All 30 Outlets In Arkansas
Robert Daniel
MarketWatch Pulse
TEL AVIV -- Advance America, the Spartanburg, S.C., provider of payday cash-advance services, said it would close its 30 Arkansas offices because a regulatory decision prevents it from operating profitably in the state. The closings will cost about $900,000, AEA said in a statement on Tuesday. The company and the Arkansas attorney general could not come to terms on their differing interpretations of the law, AEA said. The company also said that in August it finished closing its nine stores in New Mexico at a cost of $100,000. Restrictions on fees and interest meant it couldn't operate profitably there as well, the company said.
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Most folks judge the health of a business by the revenue that comes in through sales. But not all revenue is equal. Companies can grow their sales by buying other companies, which means you don't get a clear view of how the real sales trends are moving.
So, many analysts, particularly those who look at retail, try to gauge what¿s known as "organic" growth, by looking at same-store sales. These are sales only at outlets open more than a year, so the metric can exclude any sales jump that comes from opening new locations. Retailers release same-store sales (which are frequently called "comps" since they're a true comparison from the previous period) every month.
Retail, incidentally, isn't the only industry to look at same-store sales. Hospital companies, also use the metric, to gauge how existing hospitals are performing compared to ones they just built or acquired.






